Pension deduction by Employer
6 months ago
My mother-in-law (MIL) is currently getting family pension from an Electrical Distribution unit that is on a public-private-partnership model. My father-in-law expired in 2017.
After death of husband, MIL was getting normal pension. But the company mistakenly forgot to convert it to family pension and instead paid MIL full pension for 2 extra years. After realizing their mistake, they made up a schedule and started deducting money (50% of the payments) from her pension payments without any notification to MIL. The problem MIL already paid higher income taxes due to the extra payment (to the tune of 1-3L). The company now says it is not their problem and they have to recover the extra amount.
Can the company really do whatever it wants? MIL suffered losses because of their mistake. Now she has to control her monthly expenses because of their mistake.
Overall we have two concerns
1. Pension was recovered without any notification to the receiving party. As a result, MIL kept her normal expenses without realizing the company forgot to adjust pension amount and she was spending more than she should.
2. Shouldn't the company compensate for the losses due to extra income tax paid by MIL? If the company would have notified on time, maybe something could be done. But you cannot amend returns after 1 year.
A.Dear Sir,
It goes on the principle “No person can enrich herself at the cost of others”. But, the company ought to have issued notification to your mother-in-law. You can go to court of law preferably state service tribunal or the High Court and legally fight.
It goes on the principle “No person can enrich herself at the cost of others”. But, the company ought to have issued notification to your mother-in-law. You can go to court of law preferably state service tribunal or the High Court and legally fight.
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A.Dear Client,
Employers are typically required to notify pensioners about any changes in their pension payments, including deductions. Failure to provide adequate notice may be a breach of the terms of the pension agreement or statutory requirements. If the company mistakenly overpaid pension benefits to your mother-in-law, they may have a legitimate right to recover those overpayments, provided that they follow the proper legal procedures. However, they should generally notify her in advance of any deductions and provide an explanation for the deductions. Overpayments of pension can lead to higher income tax liability for the recipient. If your mother-in-law can demonstrate that the overpayment was due to the company's error, she may have grounds for seeking compensation for the additional income tax paid. However, this may involve complex legal and tax considerations, and professional advice is essential. It's crucial to gather all relevant documentation, including pension records, communication with the company, and income tax documents, to support your case.
Employers are typically required to notify pensioners about any changes in their pension payments, including deductions. Failure to provide adequate notice may be a breach of the terms of the pension agreement or statutory requirements. If the company mistakenly overpaid pension benefits to your mother-in-law, they may have a legitimate right to recover those overpayments, provided that they follow the proper legal procedures. However, they should generally notify her in advance of any deductions and provide an explanation for the deductions. Overpayments of pension can lead to higher income tax liability for the recipient. If your mother-in-law can demonstrate that the overpayment was due to the company's error, she may have grounds for seeking compensation for the additional income tax paid. However, this may involve complex legal and tax considerations, and professional advice is essential. It's crucial to gather all relevant documentation, including pension records, communication with the company, and income tax documents, to support your case.
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A.Dear Client,
In the context, rules governing the payment of family pension may be furnished in short as under - Rule 81 Sanction of family pension and residuary gratuity on the death of a pensioner (1) Where the Head of Office has received an intimation regarding the death of a pensioner or death or ineligibility of a family pensioner, he shall ascertain whether any family pension or residuary gratuity or both in respect of the deceased pensioner and any family pension in respect of the family pensioner are payable and proceed as hereinafter provided. (2) (a) (i) If the deceased pensioner is survived by a widow or widower who is eligible for the grant of family pension under rule 54, the amount of family pension as indicated in the Pension Payment Order shall become payable to the widow or widower, as the case may be, from the day following the date of death of the pensioner. (ii) The Pension Disbursing Authority shall, on receipt of a claim in Form 14 from the widow or widower, authorize the payment of family pension to the widow or widower, as the case may be:
Provided that no claim in Form 14 shall be required if the widow or widower was holding a joint account with the pensioner in which the pension was being credited. (iii) The Pension Disbursing Authority shall authorize payment of family pension to the widow or widower, who is not required to submit Form 14, on receipt of information in writing of the death of the pensioner: Provided that such widow or widower shall submit a copy of death certificate to the Pension Disbursing Authority and an undertaking to the effect that any amount to which he or she is not entitled to or any amount which may be credited to his or her account in excess of the amount to which he or she is entitled would be refunded or made good. In view of the above proposition of governing rules, if the claim in Form 14 from the widow or widower along with the death certificate of the pensioner is not received or received in the belated stage by the pension disbursing authority, then the pension disbursing authority can not be held responsible for the cause. But in case the widow can show the receipt of Form 14 that she has submitted intimating the death of pension, in that case widow may escalate her grievance before the Centralised Public Grievance Redress and Monitoring System (CPGRAMS) is an online platform available to the citizens 24x7 to lodge their grievances to the public authorities on any subject related to service delivery. It is a single portal connected to all the Ministries/Departments of the Government of India and States. Every Ministry and State has role-based access to this system. CPGRAMS is also accessible to the citizens through a standalone mobile application downloadable through the Google Play store and a mobile application integrated with UMANG. Website url to lodge grievances: http://pgportal.gov.in/ Name of the officer and contact details: Shri Sanjay Wadhawan, Deputy Secretary 3rd floor, Lok Nayak Bhawan, Khan Market, New Delhi-110003 Email: [email protected] Tele:011-24655523. You may accordingly take the steps to redress your grievance.
In the context, rules governing the payment of family pension may be furnished in short as under - Rule 81 Sanction of family pension and residuary gratuity on the death of a pensioner (1) Where the Head of Office has received an intimation regarding the death of a pensioner or death or ineligibility of a family pensioner, he shall ascertain whether any family pension or residuary gratuity or both in respect of the deceased pensioner and any family pension in respect of the family pensioner are payable and proceed as hereinafter provided. (2) (a) (i) If the deceased pensioner is survived by a widow or widower who is eligible for the grant of family pension under rule 54, the amount of family pension as indicated in the Pension Payment Order shall become payable to the widow or widower, as the case may be, from the day following the date of death of the pensioner. (ii) The Pension Disbursing Authority shall, on receipt of a claim in Form 14 from the widow or widower, authorize the payment of family pension to the widow or widower, as the case may be:
Provided that no claim in Form 14 shall be required if the widow or widower was holding a joint account with the pensioner in which the pension was being credited. (iii) The Pension Disbursing Authority shall authorize payment of family pension to the widow or widower, who is not required to submit Form 14, on receipt of information in writing of the death of the pensioner: Provided that such widow or widower shall submit a copy of death certificate to the Pension Disbursing Authority and an undertaking to the effect that any amount to which he or she is not entitled to or any amount which may be credited to his or her account in excess of the amount to which he or she is entitled would be refunded or made good. In view of the above proposition of governing rules, if the claim in Form 14 from the widow or widower along with the death certificate of the pensioner is not received or received in the belated stage by the pension disbursing authority, then the pension disbursing authority can not be held responsible for the cause. But in case the widow can show the receipt of Form 14 that she has submitted intimating the death of pension, in that case widow may escalate her grievance before the Centralised Public Grievance Redress and Monitoring System (CPGRAMS) is an online platform available to the citizens 24x7 to lodge their grievances to the public authorities on any subject related to service delivery. It is a single portal connected to all the Ministries/Departments of the Government of India and States. Every Ministry and State has role-based access to this system. CPGRAMS is also accessible to the citizens through a standalone mobile application downloadable through the Google Play store and a mobile application integrated with UMANG. Website url to lodge grievances: http://pgportal.gov.in/ Name of the officer and contact details: Shri Sanjay Wadhawan, Deputy Secretary 3rd floor, Lok Nayak Bhawan, Khan Market, New Delhi-110003 Email: [email protected] Tele:011-24655523. You may accordingly take the steps to redress your grievance.
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